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Freeserve has cut the cost of its broadband service to £27.99 a month it announced today but denies it's a knee-jerk reaction to recent price-cutting in the sector.

The move to cut the cost of its service by £2 a month comes less than two weeks after rival AOL dropped the price of its broadband service from £34.99 a month to £27.99 a month.

Keith Hawkins, managing director of marketing at Freeserve, says: "No, [this is] not a knee-jerk reaction, but proof of our commitment to competing on the best value, high quality proposition that Internet consumers have come to expect from Freeserve".

Whatever.

Freeserve is also offering £25 worth of "premium broadband content" for free as part of the deal. The carrot, in this case, includes 150 free text messages, 20 free photos from the its digital photography service and two month's free membership of Freeserve Music Club, which offers music downloads.

In its usual modest style, Freeserve reckons this is the "best broadband deal the UK has ever seen". No doubt punters will judge for themselves on that claim.

In a statement the company said that "price isn't the only consideration when consumers are choosing their broadband provider". If that's true, why has Freeserve bothered to drop the cost of its service coupled with a £25 giveaway? ®